I recently read an article called “Benefits of Using Inventory Management Software,” which did a fairly good job of outlining a few benefits of using inventory management software.
The article was a bit vague and poorly structured, though, so I thought I would help out by reorganizing the information into a more coherent form. Here are the three benefits of using inventory management software I gleaned from the article.
Inventory management software:
1. Simplifies the task of inventory management. After describing the complexity of managing inventory, the author of the article boldly claims, “Inventory management software makes such complex task (sic) easy.” This, however, isn’t true.
Inventory management is always going to be a challenge because inventory levels are always fluctuating and supply and demand are in a constant state of change. What I think the author meant is that inventory management software makes the challenge of managing inventory easier.
Inventory management software is a tool that helps managers make smart business decisions. It can’t make those decisions for them, but it is a very helpful tool.
2. Creates in-depth reports to guide business decisions. When managers use barcode scanners to input product data into inventory barcode software they can get an up-to-the-minute look at their inventory levels at any time.
They can also receive detailed reports on sales, orders, how long it takes to sell a product, product freshness dates and much more. All of this information can be used to avoid shortages and overstock, which is one of the main goals of inventory management software.
3. Tracks costs to accurately price products. With inventory management software, companies can get a comprehensive view of how much they spend on products. There are many little expenses that can add up.
If managers know about these costs they can account for them in the prices they assign to products. If they don’t know about these costs they risk under-pricing their products so they won’t earn enough profit on them.
Knowledge is power. That is the main benefit of inventory management software. The more you know, the more you can improve your business practices to really succeed.